Following the Republican sweep, a key question for dealmakers is whether this election portends the emergence of a Trump Doctrine with positions on key issues that are meaningfully distinct from traditional Republican policies, or whether campaign talking points will solidify into positions that are familiar to the GOP faithful. Until that question is answered in time, the safest bet for the future direction of legislation is to look at the places where Mr. Trump and the Republican Party most overlap.
In this regard, we are likely to see significant support from the Republican Party at large for Mr. Trump’s vision of rejuvenating the economy by slashing taxes. His tax plan calls for a business tax rate of 15 percent, elimination of the corporate alternative minimum tax and a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10 percent. A lower corporate tax rate – on par with, or below, that of other industrialized nations – together with a shift to a tax structure that encourages profits earned and taxed abroad to be repatriated could result in more opportunity for the efficient deployment of capital in the U.S., which will likely spur dealmaking activity in general.